LIC Surrender Value Calculator 2026

Calculate estimated cash payout values and financial losses before surrendering your LIC endowment policy. Compare GSV with SSV projections. Updated for 2026.

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How much will I get back if I surrender a 5 Lakh LIC policy after 5 years?

For a ₹5 Lakh Sum Assured policy with an annual premium of ₹25,000 paid for 5 years (Total: ₹1,25,000), the estimated surrender value payout is ₹82,850. You will lose approximately ₹42,150 (34% of your total invested premiums) as a surrender penalty.

Understanding LIC Surrender Penalties & Rules

Surrendering a life insurance policy prematurly is one of the most expensive financial actions you can take. LIC imposes high charges because traditional policies are designed as long-term savings contracts. If you close the policy early, the acquisition costs (agent commissions, policy setup charges, administrative fees) are deducted from your premiums.

Before surrendering, check if a **policy loan** (which allows you to borrow up to 90% of the surrender value while keeping the policy active) or conversion to a **paid-up policy** (which stops future premium payments but keeps a reduced coverage active to maturity) serves your needs better.

हिं

एलआईसी सरेंडर वैल्यू कैलकुलेटर — LIC Surrender Value in Hindi

एलआईसी पॉलिसी सरेंडर वैल्यू कैलकुलेटर (LIC Policy Surrender Value Calculator) 2026. अपने पॉलिसी को समय से पहले बंद करने पर मिलने वाली राशि की गणना करें।\n\nनियमों के अनुसार, सरेंडर वैल्यू प्राप्त करने के लिए कम से कम 2 साल का प्रीमियम भुगतान आवश्यक है। सरेंडर वैल्यू की गणना इस प्रकार होती है: (कुल जमा प्रीमियम × प्रीमियम फैक्टर) + (संचित बोनस × बोनस फैक्टर)। पॉलिसी को जल्दी सरेंडर करने पर जमा राशि का लगभग 30% से 50% तक का भारी आर्थिक नुकसान हो सकता है।

Frequently Asked Questions

Guaranteed Surrender Value (GSV) is the minimum amount guaranteed by LIC under the contract, calculated using standard premium and bonus factors. Special Surrender Value (SSV) is a discretionary value computed by LIC based on the paid-up value and historical asset performance. LIC pays whichever is higher at the time of surrender. Typically, SSV is significantly higher than GSV in later policy years.

For traditional LIC policies issued after 2020, premiums must be paid for a minimum of 2 full years to acquire surrender value. If you close the policy before completing 2 full years of payments, you will get zero returns and lose the entire premium paid.

GSV is calculated as: GSV = (Total Base Premiums Paid × GSV Premium Factor) + (Accrued Reversionary Bonuses × GSV Bonus Factor). Both factors are percentages that increase with the number of years the policy is active.

To surrender your policy, you must visit your home LIC branch with the following documents: (1) Original Policy Document (Bond paper), (2) Surrender Application Form 5074, (3) NEFT Mandate Form (for direct bank payout), (4) Cancelled Cheque, and (5) Self-attested identity proof (Aadhaar Card, PAN Card).

If you surrender your policy after completing 5 active years, the surrender payout is completely tax-free under Section 10(10D). However, if you surrender before completing 5 years, the amount received is taxable under your regular income tax slabs, and any Section 80C deductions claimed in past years will be reversed and taxed.

Making the policy "paid-up" is usually better than surrendering. In a paid-up policy, you stop paying future premiums but the policy continues until the maturity date with a reduced Sum Assured. You get the paid-up maturity value at the end of the term. Surrendering terminates the policy immediately and results in a severe immediate capital loss.

No, LIC does not permit online surrender requests for security and signature validation reasons. You must physically submit the original policy bond, Form 5074, and your cancelled cheque to the home branch where your policy was purchased.

No, the calculator provides a highly accurate estimate of the Guaranteed Surrender Value (GSV) based on standard tables. The final payout may be higher if LIC applies Special Surrender Value (SSV) factors based on current valuation yields.

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